Profits have been decreasing for several years at Pegasus Airlines. In an effort to improve the company's performance, consideration is being given to dropping several flights that appear to be unprofitable. A typical income statement for one round-trip of one such flight (flight 482) is as follows: Ticket revenue (105 seats x 40% occupancy x $70 ticket price) 2,940 100% Variable expenses ($13.00 per person) 546 18.6 2,394 81.4% Contribution margin Flight expenses: Salaries, flight crew 330 Flight promotion 710 Depreciation of aircraft 460 Fuel for aircraft 180 270 Liability insurance Salaries, flight assistants 700 Baggage loading and flight preparation 200 Overnight costs for flight crew and assistants at destination 70 Total flight expenses 2,920 Net operating loss (526) The following additional information is available about flight 482: a. Members of the flight crew are paid fixed annual salaries, whereas the flight assistants are paid based on the number of round trips they complete